Financial planning involves more than just investing and saving in the modern world. It is all about minimising risks and safeguarding against unanticipated events that might jeopardise your financial security. Road accidents are a severe issue in India today. Many bikes are damaged and many lives are lost due to road accidents every year. Bike insurance is often disregarded in this calculation, despite the fact that it is crucial to guaranteeing your financial stability.
Hence, buying a bike insurance policy is one of the ways to protect yourself against such unfortunate events. Read this blog to understand how bike insurance helps in financial planning.
Importance of Bike Insurance for Financial Planning
A bike insurance can save you in the hour of need. Here’s how bike insurance helps in financial planning:
● Financial Coverage
There are several situations involving your bike in which you could suffer serious financial loss. Your bike could be involved in an accident after which you have to spend significantly to repair. A third party could demand reparations for any damage inflicted by your bike on the person. Your bike could also become a casualty of a natural disaster or be stolen.
In all situations, bike insurance ensures you don’t suffer any financial damage. It can cover you financially across a wide range of situations.
● Legal Requirement
As per the Motor Vehicle Act of 1988, a bike owner must have bike insurance with at least third-party coverage. If you don’t fulfil this requirement, you can suffer financial penalties and be imprisoned. Thus, bike insurance with third-party coverage keeps you legally safe and immune from penalties.
● No-Claim Bonus
A no-claim bonus is an incentive for not raising any claims during the policy period. Under a no-claim bonus, you can get discounts on the renewal premium for your bike insurance.
● Personal Accident Cover
A personal accident cover provides coverage to the bike owner. While riding the bike, if you suffer any injuries, the personal accident cover will cover all the medical expenses related to the treatment. It is compulsory to have a personal accident cover and it can provide coverage of up to Rs. 15 lakh.
● Add-Ons
Add-ons are additional options which expand the scope of a policy’s coverage. For example, a zero depreciation cover ensures that the insurance company settles your claims without taking the depreciation of the bike into account. Similarly, roadside assistance cover provides you coverage if you are stranded due to a breakdown of the bike or the fuel runs out.
● Cashless Facility
Insurance companies enter into agreements with bike garages so that insured customers can avail cashless facilities at the garage. The greater the garage network of the insurer, the easier it will be for you to avail of cashless facilities.
Bike Insurance Policies You Can Choose From
You can opt for comprehensive bike insurance or third-party bike insurance to secure your bike.
Comprehensive bike insurance will cover claims related to your bike as well as claims raised by any third party. Third-party bike insurance will only cover claims raised by a third party and exclude claims made by a bike owner.
Bottom Line
To sum up, bike insurance is an investment in your financial security rather than merely an extra cost. You may protect yourself against unanticipated events and guarantee a more seamless financial path by including it into your financial strategy. The next time you’re thinking about financial planning, keep in mind that bike insurance is an essential component of a safe and confident ride. Insurers like ACKO Insurance will give you an idea of the types of deals you can get for bike insurance.
https://www.acko.com/two-wheeler-insurance/
https://www.libertyinsurance.in/two-wheeler-insurance-guide/bike-insurance-benefits.html
